PATH
Another analyst takes a swing
UiPath started Monday on the back foot after DA Davidson downgraded the stock to Underperform and chopped its price target to $10. That’s the kind of move that makes traders flinch, especially when it lands in the middle of a broader analyst chorus that’s been trimming expectations since the company’s Investor Day on Sept. 22.
The Street is getting a little less dreamy
This isn’t just one analyst having a dramatic morning. Several firms have already nudged their targets lower:
- UBS kept a Neutral rating and cut its target to $14
- BMO Capital kept Market Perform and lowered its target to $15
- Canaccord Genuity held Hold and trimmed to $14
- TD Cowen kept Hold and lowered to $15
So yeah, the vibe is less "AI rocket ship" and more "show me the numbers." That said, Needham is still in the optimistic camp, keeping a Buy rating and a $22 target. Its thesis? UiPath’s AI products are gaining traction, bigger customers are contributing more of the recurring revenue pie, and management still wants long-term operating margins above 30%.
Why investors care
UiPath doesn’t just need product buzz; it needs proof that the AI excitement turns into durable growth and profits. When a stock is already under pressure, a downgrade can act like a stiff breeze on a house of cards.
Technically, PATH is also wobbling: it’s trading below its short- and long-term moving averages, which means the market hasn’t exactly been handing out a confidence medal.
Big picture: the AI story is still there, but Wall Street is clearly demanding a cleaner, less hand-wavy path to payoff.